Skip to main content

tv   Real Money With Ali Velshi  Al Jazeera  July 1, 2014 7:00pm-8:01pm EDT

7:00 pm
>> that's all of our time here on our news hour. "real money with ali velshi" is coming up next for you right here on al jazeera america. >> we have been riding high on the stock market, maybe too high. i'm talking about whether it's time to pull back and play it safe. with noble prize winner, shiller. and oil companies, what's being done to protect against sabotage, and plus, losing the best on the boardwalk, why casinos are sag no luck in atlantic city. i'm ali velshi, and this is "real money."
7:01 pm
this is "real money", and you are the most important part of the show, so tell me what's on your mind by tweeting me at ali velshi, or facebook.com/ali velshi. it is summertime and the stock market is smoking hot and it needs to cool off or it's going to burn up. today, the dow came 2 points within 17,000, and still jumped 29 points, and set another record. the s&p 500 also reached a new record, up 7/10 of a percent, and the nasdaq up just over a percent for a 17 year high. this is not a bad way to start the second half of the year, and check out the 23% jump that the s&p 500 has enjoyed in the last year, including a nearly 7% gain so far in 2014. give credit to america's
7:02 pm
steadily recovering economy, which includes a stronger job market, decent consumer spending and relatively solid corporate profits, and let's not forget those very low interest rates and the central bank that have been pumping money into the global economy. this seams like good news for the half of americans who own stocks or portfolios, but here's the problem. the stock market election like it might be rising faster than it should, so many of the professionals spend their time crunching numbers. most common way to say that stocks are overvalued and headed for a fall are the pe ratio, the price of a stock divided guy it's earnings. this chart shows us that the forward pe, the price of earnings to come, that are
7:03 pm
expected, for the stocks in the s&p 500 are now at 15.6. that's 2 point ahead of the historical average going back to 1977. this is the average, 13.7. and we're at 15.6. that's not as high as it has been at other points in the last 35 years, and that has a lot of market pros saying this market is no close to being overprices and not close toking ready to tumble. whether it has been heated or how much takes us into territory way beyond numbers like this. it involves psychology. why investors did what they do. some believe that markets are efficient, and races reflect all known information out there. but another school of thought says that's anonymous, that human beings and investigators make all sorts of irrational
7:04 pm
systems. two men shared the noble prize for economics. markets are efficient. they take in account everything this that we know and price proper. robert shiller with the protect bubble in the 1990s and the housing market. he says investors and markets are in no way perfect, but that's not to say that bob shiller isn't into numbers. in fact, he helped develop a different way of measuring whether stocks are overvalued or not. it's called the cyclically adjusted pe ratio, and it looks at 10 years of earning data at a time. here to tell us what it is, nobel prize-winning robert shiller. tell me why we need take, and why it's more effective than what i showed viewers, a normal
7:05 pm
pe ratio over the last five years. >> when we developed cape, we were the first, and we thought common senseically thought, why look at one year's earnings, it's not a good measure. it's affected by the business cycle. the earnings have been soaring since the recession and 2009, but a lot of that is maybe a temporary recovery. it goes back down. so what we do, we take a ten-year average of earnings, and by that score, the earnings are way up, compared to the ten years. the price earnings ratio is up to 26. really high. the only time it has been higher is 1929. >> wow. >> 2,000, and 2007. and we're getting pretty close to 27. >> when you look at this, do you say, this is a better guide? and as such, if it's this high, it has only been higher two
7:06 pm
times, that would be a signal to pull back off of this market. is that what you're suggesting? >> i think it's a signal for precaution, and maybe investing internationally where the capes are not always so high. but on the other hand, in 2000, the cape areaio got up to 46 before it turned down. you know, i don't know where this is going to end, so i still think that having something in the market, maybe reduced but still having something in the market, and the alternatives are reasonable. >> well, it's the beginning of the third quarter, so if for no reason than the date, it's worth looking at the portfolio, where have i had gains, and are some stocks on their own? some investors want to be specific by region, by country, by industry, and in my
7:07 pm
introduction to you, where you differ from eugene pamma, who believes in the efficiency of markets. give me a synopsis of that theory, that markets take all of the available information, and hence are well priced. >> personally, i'm a big admirer of gene fama and i think that the nobel did well putting him on with me. he's involved with value investing, and maybe he's pulling back, and maybe his fund is pulling back at this point, you'll have to ask him. but i'm thinking that we don't really disagree that value investing has historically has had an advantage. >> now you're investing in stocks that appear to be underpriced versus others. and let me ask you this, one thing that you probably disagree
7:08 pm
upon, your belief that investors can be and often are irrational. we're human beings, we're not algorithms, and we can be irrational about markets. >> i asked gene about that, and he will say, of course they can be irrational, and then they're eliminated. and it doesn't tolerate irrational people. i think there's an element of truth to that, but it's exaggerated. the market, you can play along with the market for a long time. you can be a fool for a long time before you're eliminated. >> you look at the dow, coming to 17,000, and i think we all agree these are just numbers, and the only reason we use it as a reason to have this discussion, is because it's a number that shows up. you'll see it in the news a lot, when you're watching tv with the banner at the bottom. and people are paying attention.
7:09 pm
one could react two ways to this, i should get hot and sell, or wow, this market is on fire, i should get in. and other investors who are accountants and engineers, they say, i should get in. and maybe your rue is not that you back fully out of the market, but a 15.6 former pe, or in your case, with the cape, 26 and a half, this is not the time to back up the truck. >> yeah, when you talk about 17,000, those things, for a technical analyst called out a liftance level, back in the 60s, the dow is crushing 1,000, and it couldn't pass, and today bump up against 1,000, and it took many months to get past 1,000. so maybe it was another resistance level. but i don't think that 17,000 is
7:10 pm
a sign that we're off to the races. it doesn't mean that to me at all. >> thank you for being with us, robert shiller is a professor of economics. i'm going to tell you how insurgents are losing some ground on oil rich iraq, and plus, cyber wars between russia and the west, with gas facilities targeted by hackers. "real money" continues.
7:11 pm
7:12 pm
>> the crisis in iraq and the region gets more complicated. over the weekend, the sunni muslim insurgent group, known as the islamic state of iraq and lavant a caliphate.
7:13 pm
the surgerie insurgents led by s islamic state are losing ground if their drive to take baghdad. that's increasing the likelihood of a de facto partition of iraq, and now the various factions in the country will share the oil riches. they seized the territory in the oil rich kirkuk province. and you can see that. they produce only 17 perfection of iraqis significant oil output. but the kurds export much of it through turkey and they have struck out on their own and signed deals with foreign oil companies. that has caused a major spat with the central government in baghdad over oil sharing, but with the insurgents, baghdad is in no condition to dictate what the kurds do, because they're
7:14 pm
holding off the offensive. and the trade in i'll and in the autonomous zone gives them more oil independence. baghdad may look besieged by the central government still controls the majority of iraq's oil output, which is in the south of the country, and despite the violence, iraq's oil split have not been disrupted for the most part. they still export 2.2 million barrels of oil a day, and that makes it the 6th largest in the world. baghdad and central iraq still have the economic wherewithal to hold out, despite losing control of much of the country geographically. the surgeries in the west appear to have the biggest hand economically. anbar province is mostly
7:15 pm
impoverished and air add, but under is a potential oilfield. it may look like child's play in the south. two years ago, a korean firm built a gas it facility near the syrian border, and this week, the iraqi forces abandoned it. it's not clear if the insurgents seized it yet, but the islamic states are selling oil to fund syria and iraq. sunny insurgents from the islamic states and other groups are going to try to do the same thing in iraq. for more and the view from the white house, let's go to mike viqueira on the lawn. what do you make of this? >of>> reporter: first, american
7:16 pm
personnel are being moved out of the american embassy in baghdad, ate and many are being moved to basrah, and at any rate, concerning baghdad, it's nowhere settled as you know. the pentagon today reporting that the isoforces are still pressing to the north. and what their intention is, the spokesman called it fluid, and no more that you need over the increasing nervousness of the situation over baghdad and the rest of iraq, that more troops have been sent? in a combat role. i was just looking at an avenue
7:17 pm
that ben rhodes, national security has been giving, and more and more, the united states doesn't want to get involved militarily in what is going on in iraq, and whether or not iraq can get it's political house in order. they met on july 1st today in baghdad, a session that broke down in acrimony. remember, the united states has been maliki and that is not happening. >> they didn't choose a new prime minister, name a new prime minister, which means that maliki is going to be the new prime minister good to see you, buddy. and bobby geuche is the managing editor. he spent five years in baghdad, and bobby, welcome to your new job, we're a big admirer of it.
7:18 pm
and we think that everybody should read it, it makes us smart. you know the situation very very well. there's deterioration on every front in iraq, and none the least of which, they don't have a strong government, and a strong prime minister and clearly the american troops are not holding things up. give your evaluation. >> the trouble is he only thought of himself as representing one part of the community. maybe the majority, the shia, but he was openly disdainful of the sunnies, who make 20%, and the kurds, who make up another 20%. so it's not simply a matter of having a strong prime minister or a weak one, but they need a government that sees itself as representing everyone. and in this crisis, they need a national unity government. maliki has shown no interest in any of that. even as recently as last week, he was saying things plainly offensive to sunnies and the
7:19 pm
kurds. >> the shiites were left out of the process. he came to power at a time when this was their chance to take power of so he's not born of the mindset of let's have an inclusive government. >> the shiites who he represents, they see their role of taking revenge for 1700 years of injustice. and there were great injustices for long periods of time. but this is the 21st century, and reliving what happened is not taking iraq forward. >> it's ice remarkable that iraq plays out the shia/sunni rift and there are plenty of sunnies who are not happy with the iraqi central government. but don't necessarily need the islamic state or a militant organization there. >> a vast majority of iraqis have no trust with the islamic
7:20 pm
deal. at the moment moment, they will support isis, and we have seen this movie before. this is exactly what happened in 2003 when the u.s.-led coalition went in. a lot of sunni tribes went to the surgery, and that led to al qaeda. and eventually, over four or five years, they were not riding the tiger, the tiger was riding them. and they drove al qaeda out. they did so in expectation with a better deal with the central government. when they didn't get the deal, they went back to al qaeda. the loyalties are very flexible. the tribes are looking out for their best interest. if maliki doesn't protect them, they think turned to the united states, and they fought against us when we insulted them. >> the united states would like stability in a central government.
7:21 pm
and would like a central government. maliki has asked for help with the united states and he's getting it. and yet he's not willing to cooperate and be more inclusive. >> it can't just be the u.s. all of the neighbors the maliki and even iran, iran is having second thoughts, and the second thing to be clear. maliki can't be part of the solution, he's touche part of the problem. he has to leave. i can't see any solution where maliki remains. the iraqi kurds, that's what they're looking for from baghdad. whenever the political upheaval dies down in baghdad, when they see maliki as prime minister. >> my son often asks me, when things like this happen in egypt or syria, what is it that you would like to happen?
7:22 pm
what makes sense? >> we would like stability. we need stability. and we continue allow a major terrorist group, the most successful in modern times to have safe haven in iraq. whether it's in the desert or the cities. we can't allow isis to control large territories, that's one, and secondly, as you point out, the 6th largest producer of oil in the world. and oil reserves in the world, we can't allow that to be reachable by terrorists. jordan is an ally, and turkey is a nato partner, and isis threatens all of them. >> all of them. i think they have made a tactical mistake by declaring the leader, i think it's overreach. and that's going to turn off a lot of iraqis and sunnis.
7:23 pm
it's one thing to claim you're fighting for religion. but you take on a religious despot. because this guy is essentially saying he's the pope of sunni muslims and that's gone too far. i think that a lot of sunnies in the next few days will reject that idea. >> thank you for joining us, and we hope that you'll be a regular. bobby ghosh. without immigrants in america, we'll all pay the price, and one specific way that it could cost your family. and plus, russian hackers could threaten american pipelines from thousands of miles away.
7:24 pm
7:25 pm
>> immigration advocates are speaking out a day after president obama said he would go alone with the immigration system. he has asked aids for action that he can take un laterally.
7:26 pm
today, the afocio called on the president to take bold moves, and others have been pressing for changes to the immigration system. among them are america's farmers because many of the 2.2 million farms depend on undocumented workers to stay alive, and if the workers weren't there, farmers would pay more for labor and american consumers would pay more for groceries. mary snow has the story. >> reporter: from fields of corn to orchards growing apples, half of the workers on america's farms picking crops are undommed. that's the government's estimate. the exact number is difficult to come by, and so is the cost of farmers and consumers should those workers disappear. the american farm bureau federation recently commissioned a study to look at that scenario. economists commissioned a study, what would happen if they only
7:27 pm
were in the city, $60 billion in five years, with fruit production dropping 61%, and vegetable production declining by 31%. it projects that food prices would rise 5-6% with farmers limited by how much of the cost they can pass onto consumers. the result would be higher supplies and higher imports. an agricultural economist not linked to the study says food prices would be substantially higher. >> there would be a worker shortage and there would be an attempt on the part of the farm employer to find a new source of labor. it would be a higher priced source of labor, pushing up the price of food. >> field workers on farms earn an average of $11.38 an hour, many of those jobs are seasonal. and compare that to construction worker, another physically demanding job.
7:28 pm
the average wage is $21 cents. they are having difficulty finding americans who want farm jobs, and particularly on dairy farms. one economist who worked on a 2009 study, commissioned by the national milk federation found milk prices could spike 20%. >> if we took out 15-20% of the work production that's no longer there because the employees are no longer there to do the work. if you take a gallon of work, it's a $4.60 gallon. >> whether it's dairy or crops, american farmers make no secret of the fact that they depend on a workforce from across the border to keep the american food supply affordable. mary snow, aljazeera. >> the national milk federation
7:29 pm
is speaking out about the impasse on immigration reform. it says that dairy farmers are facing a dilemma, and the lack of legislative fix is bad news for consumers . the american department of justice is thumping it's chest over the france's biggest bank. it admitted that it violated saxes against iran and other countries and agreed to pay $9 billion in fines. but some critics say that the bank got off easy, and yet no one is going to jail. we're joined by washington post banking report, danielle, and we see the headlines, people see them all over the place, but we don't know what this is about. what on earth is bnp, france's biggest bank, paying a $9 billion fine to the u.s. for. >> prosecutors cougs the bank of
7:30 pm
going through an elaborate scheme to process transactions for countries such as sudan and cuba, that are under sanctions by the u.s. government. and allegedly, this activity went on from 2002 to 2012, far longer ever other banks that been accused of a similar action, and apparently, folks that are phenomenallable for the bank. >> the department of justice's dog in this fight, they have been going after big bangs and does this prove that they can? what are they trying to achieve out of this. >> there is certainly a lot of the population, certainly scholars, that think that the justice department is trying to be a tough regulator and enforcer, especially after a lot of the banks coming out of the financial crisis essentially got away with no more than a slap on the wrist, considering how much money they're making, and how
7:31 pm
much they had to pay in fines. so we see the justice department getting a lot more aggressive with various banks in the country. chase morgan, bank of america, and with bnp, there was extensive evidence that the bank was well aware of what was happening, and in fact, there was one occasion where the bank was setting up regional syndicate banks to process money through the middle east, through africa and europe, all in an effort to avoid raising any kind of alarm with the regulators. >> and yet, nobody goes to jail, which is a frustration that a lot of people have, and a lot of critics, pro banking critics, a book about it, but in the end, when you find a bank, the shareholders, who didn't do anything wrong, end up paying,
7:32 pm
and nobody who actually did anything wrong goes to jail. >> certainly, but this settlement is a little bit different than the ones that you see in the past, in that the regulator of the bank in new york, benjamin losskey, coming out of the financial services, in lieu of stripping the bank, he said you have to fire 13 people in the bank, who are involved, including the chief operating officer, and in addition to that, the bank has to suspend dollar clearing capabilities. they can't transfer any foreign currency or u.s. dollars, and this is essentially the banking able to process payments to different vendors, or loan payments, or payroll in some instances. so this is a little harsher than what we have seen in the past. certainly no one was gone to jail. and often the deterrent is
7:33 pm
someone going behind bars, but this shows that the government and the regulators in the country are willing to take more steps that they're serious about banks violating their laws. >> danielle, some europeans are saying that american regulators are being tougher on non-american banks than american banks, and do you agree with that? >> i think that the two cakes in which we saw banks pleading guilty, bnp. and prior to that, credit sweep for allowing wealthy americans to avoid tacks, there was so much evidence, and years and years of evidence, and evidence that the banks were well aware of what was happening and did nothing to stop it, that the parameters of the case seemed different than what we have seen for the u.s. banks. certainly where possible, the department of justice has gone after banks like jpmorgan chase, with a multilevel fine, with
7:34 pm
admission of wrongdoing, which is certainly not a guilty plea, but there's reputation al damage to be done, and luke you said, shareholders are missing out on billions and billions of dollars that now have to be sent over to regulators for bad behavior. >> danielle, thank you so much for joining us. >> thank you so much for having me. >> danielle douglas at the washington post. general motors, massive recall processes are not keeping customers out of its show rooms, i don't understand this. gm reports sales up from a year ago, and in fact, this is the best june they have had since 2007, before the recession. and analysts had expected a decline in sales. news comes a day after gm detailed a compensation plan for victims of gm accidents and announced yet another recall. a record 29 million gm vehicles have been recalled in the last 6
7:35 pm
months. it was not the only one to have a good month. chrysler, 9% from a year earlier, and ford reported a 5% drop in june sales, but that was better than analysts had anticipated. overall, auto sales rose 1.2% to the highest annualized rate in eight years. you people who like your cars -- meanwhile, ford has a new man in the driver's seat. yesterday was allen malawi aways last day in the company, and when he arrived in 2006, the automaker was in rough shape, but he was able to steer ford away from a government bail out and bankruptcy protection, something that gm and chrysler were unable to do. fields has been with the automaker for 25 years. now auto sales in another
7:36 pm
country. cuba, up until six months ago, the only cars bought and sold in cuba were those on the road before the 1959 revolution. but 2013 law shook things up. allowing cubans to buy imported vehicles. we learned this week that in the six months ago since the law passed, only 50 cars and four motorcycles have been sold in cuba, because the price tags on the vehicles far exceed what the average cuban makes in a year or in most cases in a lifetime. the average cuban makes $20 a month, and a kia rio goes for $42,000 in cuba. and that means that the average cuban would have to work 175 years in order to afford the car. no sale. it's a cyber attack with a code war twist. how sabotagers could aim at america's oil consumption, and
7:37 pm
the casino binge has forced some to fold in the gambling capital of the east coast.
7:38 pm
7:39 pm
>> a group of russian hackers, known as dragonflies, are starting an energy company, and they may be capable of interfering with power supplies. this is the stuff of movies. global it threats, out with a new threat detailing the hacking network. dragonfly targeted defense and aviation companies before changing it's focus to energy companies. so far the russian attacking hacks have affected more than 1,000 organizations worldwide. and the semantics team says that
7:40 pm
the main motive is cyber espionage. behind the new report, what is going on? what is this? are they actually disrupting things or just trying to figure out what's going with these companies? >> well, so far, we haven't had any evidence of any sabotage happening. all we have seen is espionage. but the way that the attackers are attacking industrial equipment, it always lends to the possibility of sabotage if the attacker so wishes. >> i want to show you where they are take place. for some reason, 27 perfection, they are targeting spain, and 24%, 8%, and 32% of the attacks,
7:41 pm
germany, poland and greece and serbia, and first of all, who is dragonfly? are they a consortium of hackers, individual hackers? how does this work? >> we believe they're a group of individuals who probably have the backing of some saturday of state behind them, because the kind of crime or the kind of espionage that they perform can only be benefited by a nation state actor. we don't snow who they are, and we do know that considering that people work between 9:00 and 5:00, we have an estimate of where they could be, and there are a number of countries that are in that geography, and possibility in the majority of them for that matter. we don't know who these people are, but we know that they're trying to steal a lot of
7:42 pm
information on extreme net worth. >> what is a watering hole attack >> so a watering hole attack is very similar to what a lion or tiger does in the forest, which sits on the side of a water body and waits for the prey to come drink water so they can come and attack them. in a very similar way, online, when somebody wants to target somebody n. the energy sector, they would locate an energy company website and somehow hack into the website and wait for their attended victims to visit the website. and when they do, the attacker is unable to compromise or hack into their computer at that point. so that's an online version of a watering hole attack. >> are we worried about the denial of service attack where the company's website is attacked or power supplies could be affected? >> so looking at the tarts that
7:43 pm
they have, and the dragonfly attackers are primarily going for engineers, and network maintenance staff. and the likes of those who operate on the industrial equipment within such organizations, we believe they're probably trying to steal the documents, what they have. and my nature of the attack, gaining a foothold into the networks, they have the option of turning off the water supply, and the equipment that they have access to. >> thank you for being with us. >> semantic security response. and jamie has announced today that he has been diagnosed with cancer. diamond says that the cancer is
7:44 pm
curable and he'll soon begin therapy treatment. dimon said that the cancer has been discovered at an early stage, and it has not spread. it has been nothing but bad luck for the casinos in atlantic city, and muscle milk and spam.
7:45 pm
7:46 pm
>> atlantic city has been on a real losing streak lately. just last week, the supreme court struck down the sports betting. that followed news that the revel, the $2 billion hotel filed for bankruptcy and will close in august. last year, the show boat and it's hotel will shut down august 31st. once touted as vegas by the sea, atlantic city seems to be going bust. and where does the city go from here? a reporter for the daily news, he covers atlantic city, and he joins us from philadelphia. chuck, this is not -- atlantic city is a big deal. and what has happened? >> well, what happened is two
7:47 pm
words, it's called convenient gaming, and simply what that means, the example that i always use to illustrate what happened in atlantic city. up from 1978 to 2006, grandpa and grandma, who lived in northeast philadelphia, which is an hour and a half plus ride to and from atlantic city, they have their favorite slot machine, and they would go down there once or twice a month, ride the buses and play the slot machine and go home and come back the next week. and what happened was, pennsylvania, specifically southeastern pennsylvania, the philadelphia region, got a handful of casinos, four or five, and for instance, now grandma and grandpa, who don't care about celebrity chef restaurants, and 24-hour spa treatments, and kanye west and jay-z concerts, that you can avail yourself of in atlantic
7:48 pm
city, and now these people who live in northeastern philadelphia, atlantic city, all they need to do, in 20 minutes, they can go over the county line and play the same slot machine, and that's it. why would you drive? if you just want to gamble, forgetting all of the amenities, if you want to shoot craps why drive an hour and 20 minutes when you can go for 20 minutes. >> and they happily go to the hamptons and things like that, but atlantic city for a long time didn't develop it's non-gambling side of things. and as you said, these headline shows, and vegas style casinos, clearly, there's a drop-in gambling, and can it reinvent itself. >> the paradox is, the nine gaming revenue hotel rooms, meals, concert tickets, that has been skyrocketing for the last
7:49 pm
couple of years in atlantic city. but the problem is, though, you cannot sell enough fillet mignons or lobster tails to pay your bills because these buildings were owned and operated for so many years on a business model of a consistent level of gaming revenue and that is being lost. so what we're looking at what the economists call contraction in the market. and right now, if everything goes according to plan by the end of the summer, from january 1st to labor day, we're going to go from 12 to 10 casinos. >> when i go to atlantic city, you have to walk through the slots and the game tables to get to your room or elevator somewhere else, i'm not paying attention to what's going on, but the "real money" is on the floor, and not on the way to the restaurant. >> these scene complexes, their
7:50 pm
business lan and model is gaming revenue which they have lost. so getting back to the contraction thing, what's going to happen is, probably another two or three casinos, six is probably the magic number, so we're going to lose 50 perfection of the casino inventory in atlantic city, and darwinism will prevail and the strongest and most successful will survive, and these will be profitable. let's not forget that atlantic city eight years ago was a $5.2 billion industry, and now it's about a $2.9 billion industry, 2.8. but still, even today, that's still "real money." >> it's going to sustain fewer casinos. love talking to you, chuck barrow. philadelphia daily news. all right, here's a match made of someone's version of culinary heaven or hell.
7:51 pm
hormel is jumping beyond beef stew and grabbing muscle milk paying $250 million to guy cytosport. and it contains no milk. buying it will help attract younger and more active consumers, because increasing protein is consumer consciousness. they bought hormel in 2000, and it's protein in a bottle. and it may be the perfect thing to wash down the next helping of spam. scientists and programmers, and how video games could help. and how come america is not onboard like the rest of the world is?
7:52 pm
7:53 pm
>> relative to demand, there's a shortage of people with skills. marteau spent a decade working in the industry before heading up tech efforts in the city of baltimore. one way of finding budding stem stars that's overlooked is a hackathon. and tell my audience what this is. >> hackathons are an opportunity, in a very short compressed amount of time to grab engineers and practicingers and others who know the internet and know code and programming to get together for a weekend to solve a real world problem. some of them are happening in specific cities, and some are biggers. to get more women of color, seven and up to be the new
7:54 pm
coders. code.org, is trying to get science curriculum into schools across the country. so those hackathons are almost like baita tests to see what you can come up with to solve a problem. >> it's not like when we were growing up, it was not removed and what you dealt with. here you are talking with kids about what they use all the time. >> they have grown up with the technology, and also, they have seen what technology can do and the big thing, a lot of the kids want to solve problems. think about where you were as a kid, more often, a firefighter or someone that you are associated with. >> where is this? who is doing these hackathons >> so many places. schools and universities are doing the hackathons. associations and startup groups are doing hackathons. you're even out find non-profit organizations, this is amazing.
7:55 pm
i've seen where non-profits are putting out hackathons. >> one is to actually solve problems, and the other is to get the kids excited and interested and see this as a future career that's doable for them. >> why won't the market solve this? coders make a lot of money, and we have people fighting for jobs. we have interviewed these people here. you think at some point, the market will solve it. wow, i'm a black girl who decides i want to be an engineer, i'm set. >> right, it's exposure, number one, and i don't want to fault the parents, but a lot of parents didn't grow up understanding because of what you said earlier, there was a clear separation between engineering and society and culture. and that's changing. a lot of parents don't understand. when i say your kid could be the next video game programmer, i don't want my kid around video
7:56 pm
games, and they don't understand the impact. >> you cofounded the urban video game academy and that's where you learn the issues. >> this was an idea of doing a summer camp in urban areas where we brought kids into a summer program and said you were going to learn to program a video game at a very basic level. and what kids and parents need to know, video games are mathematics, and it's the law of physics, when you scale back the skin color and the cars, these are geometric shapes, so we married a math instructor with a video game instructor and it worked amazingly. >> as opposed to telling the kids you're doing a summer math program. >> we wouldn't have had the timeout aturnout at all. but once you get past the understanding and it's not about guns and violence, but we're talking about graphic design, and computer programming and
7:57 pm
artificial intelligence. we are not just playing them on a joystick, and we're using them to test for military and hospitals, and gaming is beyond what sometimes you think is that $50 cartridge that you just spent money on. >> or what the parents think, i don't want the kid getting involved in a video game. >> your kid just paid 70 bucks for that, you need to get them into an educational program. >> get the money back 10 fold. but mario is a sneaker. give us a digital shot of that. >> these are like shoes. >> that's not, always look good. and that's why we call you a digital lifestylist. >> good to see you. >> thank you, ali. >> americans looking to get more bang for their retirement buck, increasingly spending their sunset years overseas, and other
7:58 pm
countries greeting them with open arms. coming up tomorrow, i'll talk about the gold be opportunities, and americans will spend the 4th of july on friday, but before they do, let us all urge us to celebrate our friends north of the border today. today is canada day, many of you know i'm canadian. if you mistake me for being american, we're used to that. they can't tell us apart from the neighbors to the south. and we politely correct them. but we really are different. we have national healthcare in canada, you don't. we have cold weather. and you don't really. and the biggest thing as you cross the border, we follow the metric system, and you don't. 30° is hot there, and driving on a highway is speeding where i'm from, driving that fast will get you a ticket. you git the ticket. why is the u.s. one of the last
7:59 pm
holdouts to adopt the metric system? they have sort. in 1975, they adopt today as the nation's preferred system, and established the united states metric board. it was to manage the transition, but only liquor and wine in liters. the big two liter soft drink bottles and measuring in cigarettes. over the years, states rights types have resisted changing to metric, and in the united states, only one of the three countries in the world that hasn't changed over completely to metric. the other two are liberia and myanmar. there are a lot of good reasons to make the switch. america trade with the rest of the world, which uses metrics. canada made the switch about 40 years ago, but we all survived. that's our show today.
8:00 pm
i'm ali velshi, thank you for joining us. >> hello, everybody, welcome to aljazeera america, i'm david schuster in ne in new york, andn seigenthaler has the night off. no go ahead. trying to pick new leaders, and iraq hopes for a new unity government to end the violence. revenge in israel. bodies of the teenagers was buried today. as they blame hamas. and the question is how. scandal, how a new jersey